In just over three years, Ankit Jain and Sidhant Pai have built their environmental, social, and governance (ESG) solutions venture, StepChange, into a formidable player in the sustainability sector. With a client list that includes major corporations like the State Bank of India (SBI), Mahindra Group, Brigade Group, ICICI Bank, and HDFC Bank, StepChange is making a name for itself as a driving force behind corporate decarbonization and sustainable finance .
The Journey Begins
Ankit Jain and Sidhant Pai first crossed paths at the prestigious Massachusetts Institute of Technology (MIT) in the United States. Though they pursued separate career paths for several years, their shared interest in sustainability brought them together again in 2021. This time, they saw an opportunity to address the growing demand for carbon footprint reduction and ESG compliance. Thus, StepChange was born with the aim of helping companies make informed decisions on their sustainability journey .
Expanding the ESG and Carbon Footprint Solutions
Today, StepChange offers an impressive suite of solutions that covers everything from carbon reduction to ESG compliance management and supply chain carbon tracking. The company’s products allow businesses across sectors like automotive, real estate, agriculture, FMCG, and electronics manufacturing to track and reduce their carbon footprints. This focus on decarbonization is particularly vital for large corporations with sprawling real estate portfolios and service-heavy operations .
Jain explains, “For large services companies, decarbonization often starts with tracking energy consumption across their assets—primarily electricity and diesel usage. This forms the basis of what we call ‘operational sustainability’” .
However, StepChange doesn’t stop at operational sustainability. Their platform also offers portfolio sustainability solutions for financial institutions, allowing banks and asset managers to track the environmental impact of their loans and investments. Today, the company works with eight of the top 20 banks in India, along with numerous mutual funds and private equity firms. These solutions are designed to increase the share of green lending and investments in these institutions’ portfolios, aligning their financial decisions with sustainable practices .
Tackling Scope 3 Emissions
One of StepChange’s proudest achievements is its expertise in Scope 3 emissions—which refer to the indirect emissions that occur throughout a company’s supply chain. These emissions, which are often the largest part of a company’s overall carbon footprint, can be difficult to measure. But StepChange’s platform has successfully tracked 600 million tons of CO2e (carbon dioxide equivalent), a number that Jain points out is 20% higher than the total CO2e of the entire United Kingdom .
“Our deep focus on Scope 3 emissions and value chain sustainability is an area where we’ve built considerable depth,” Jain explains. With businesses worldwide increasingly held accountable for the emissions generated throughout their supply chains, this focus has positioned StepChange as a key player in the decarbonization efforts of both Indian and global companies .
A Growing Client Base and Global Ambitions
With around 50 major clients already on board, StepChange’s rapid growth reflects both the urgency of climate action and the company’s innovative approach to sustainability. Their India-specific database, which tracks emissions across 75,000 factors, is one of their unique value propositions, offering businesses unparalleled insights into their environmental impacts .
StepChange’s innovative offerings have attracted significant investor interest. The company has raised approximately $5 million in seed funding from high-profile investors like GFC, Beenext, and Speciale Invest. Anirudh Garg, a partner at Beenext, praised the company’s region-specific carbon accounting models, stating, “We believe StepChange’s approach will be a game-changer in the global effort towards tackling climate change” .
As the demand for advanced decarbonization solutions grows, so too does StepChange’s ambition. While most of its current operations are based in India, the company has already expanded its reach to Southeast Asia, Europe, and the Middle East. Plans are underway to target additional global markets, with Jain and Pai looking to position StepChange as a key player in the worldwide ESG and sustainability ecosystem .
The Road Ahead
With the Securities and Exchange Board of India (SEBI) mandating that listed companies must report on 75% of their value chain, the demand for ESG and carbon tracking solutions is set to rise dramatically. StepChange is ready to meet this demand, and with further expansion plans on the horizon, the company is well-positioned to lead the charge toward a more sustainable and decarbonized future .
Jain concludes, “By the end of this year, we aim to be in a strong position to raise a Series A investment and scale our operations further. Our goal is to keep adding value to our customers, helping them not only meet compliance requirements but truly transform their sustainability practices” .
StepChange is rapidly becoming a critical player in global efforts to reduce carbon emissions and improve sustainability practices across industries. With its innovative products and forward-thinking approach, the company is set to revolutionize how businesses approach ESG compliance and climate change mitigation.
References
- StepChange – Company Overview (Forbes India)
- Jain, Ankit & Pai, Sidhant. Interview on Sustainability Solutions (StartUp Insider)
- Greenhouse Gas Protocol – Definition of Scope 1, 2, and 3 Emissions
- SEBI Mandates on ESG Reporting for Listed Companies
- Investment and Funding Details for StepChange
